55th GST Council: FM announces IGST Exemption Extended for LRSAM System Components and Tools
The GST Council extended IGST exemptions for important parts of the LRSAM system to support local defense manufacturing
The Union Finance Minister Nirmala Sitharaman chaired the 55th meeting of the GST Council today (21st December 2024) in Jaisalmer, Rajasthan. Finance Minister Nirmala Sitharaman announced the extension of IGST exemptions for components critical to the Long-Range Surface-to-Air Missile ( LRSAM ) system. This decision was established in Notification No. 19/2019-Customs issued on July 6,...
The Union Finance Minister Nirmala Sitharaman chaired the 55th meeting of the GST Council today (21st December 2024) in Jaisalmer, Rajasthan. Finance Minister Nirmala Sitharaman announced the extension of IGST exemptions for components critical to the Long-Range Surface-to-Air Missile ( LRSAM ) system.
This decision was established in Notification No. 19/2019-Customs issued on July 6, 2019, which provided exemptions for certain defense-related imports. The exemption applies to systems, sub-systems, equipment, parts, tools, test equipment, and software used in assembling and manufacturing the LRSAM system.
Master GST - Expert-Led Courses for Ambitious Professionals
As per the original notification, such goods are exempt from customs duties if certified by a senior official from the Ministry of Defence and used exclusively by the defense forces. The exemption applies to specific goods imported by the Ministry of Defence or the defense forces.
It includes "missiles, command a unnd control units, radars, self-propelled launchers, and related equipment for the Long-Range Surface-to-Air Missile ( LRSAM ) system”. The goods must meet conditions such as certification by an officer not below the rank of Joint Secretary in the Ministry of Defence.
This extension ensures continued tax relief for vital components, reducing costs and supporting the government’s focus on self-reliance in defense manufacturing under the "Make in India" initiative.
The LRSAM system, an important part of India’s defense capabilities, benefits significantly from this exemption. By reducing tax burdens on essential imports, the government aims to strengthen local manufacturing and modernize the defense sector.
Master GST - Expert-Led Courses for Ambitious Professionals
The 55th GST Council meeting was attended by Union Minister of State for Finance, Shri Pankaj Chaudhary, Ajay Seth ( Revenue Secretary ) along with Chief Ministers from Goa, Haryana, Jammu and Kashmir, Meghalaya, and Odisha, and Deputy Chief Ministers from Arunachal Pradesh, Bihar, Madhya Pradesh, and Telangana.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
